Country:Uganda
Year:2013
Policy status:In Force
Jurisdiction:National
Date Effective:2013
Policy Type:Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Economic Instruments>Fiscal/financial incentives>Loans
Policy Target:Multiple RE Sources, Multiple RE Sources>Power, Hydropower, Bioenergy>Biomass for power, Bioenergy>Co-firing with fossil fuels, Geothermal>Power, Solar>Solar photovoltaic, Wind
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
Agency:The Ministry for Energy, Minerals and Development (MEMD)
URL:http://www.getfit-uganda.org/
Funding:Government of Uganda with support of German Development Bank KfW, Deutsche Bank, the Government of Norway, the UK Government as well as the Federal Government of Germany.
Description:

The main purpose of the GET FiT Program Uganda is to fast-track a portfolio of up to 15 small-scale RE generation projects (1MW-20MW) promoted by private developers with a total installed capacity of roughly 125MW. This will help to add much-needed clean generation capacity, help to strengthen regional grids and result in emissions reductions of 11 million tons of CO2.

GET FiT’s addresses the key barriers to private investment in the sector:

  • low FiTs (some below the levelised cost of energy) for renewable energy,
  • high perceived offtaker risks (with subsequent demand for offtaker guarantees), and
  • lack of availability of long-term commercial financing at acceptable terms and conditions.

In addition, according to KfW Uganda is generally perceived as a risky investment destination.

GET FiT combines:

  • Premium Payment Mechanism (a results-based top-up on the existing REFiT on a per-kWh basis, funded by the development partners through KfW);
  • Guarantee Facility to secure against offtaker and political risks, managed by the World Bank;
  • Private Financing Mechanism from Deutsche Bank that will offer debt and equity at competitive rates.

FIT Premium Payment Mechanism:

The GET FiT Premium Payment Mechanism is designed to make small-scale renewable energy generation projects (between 1MW and 20MW in installed capacity) promoted under the Renewable Feed-In Tariff (REFiT) system financially viable, thus enabling a large portfolio of projects to move to financial close and into implementation. GET FiT Premium Payments are additional payments per kWh, above and beyond the regulated REFiT tariff levels as published by ERA.

GET FIT reinstates solar PV as a eligible technology to benefit from the feed-in tariff support scheme.

 

 

Related policies:Renewable Energy feed-in tariff
Related Documents:

To get more information on GET FIT Uganda please click here.

Last modified: Mon, 29 Aug 2016 15:36:21 CEST